Arn Cenedella

Use retirement funds to purchase investment real estate

Many believe the local real estate market is close to hitting bottom.

Some will say the bottom has been reached on the San Francisco Peninsula as close to 50% of all sales now involve multiple offers.

If one believes that this might be a good time to invest in real estate, one option to consider is to use retirement funds in your IRA to purchase investment real estate.

Just like any other IRA that invests in stocks, bonds, or mutual funds; any income or gain is tax-deferred until withdrawal.

With a Roth IRA, since taxes are paid on the funds prior to  investment, any income, gain, or future withdrawal is tax-free.

Like most rules involving the IRA, there are complexities that should be reviewed by your CPA or attorney prior to entering into a decision to use retirement funds to purchase investment real estate.

That being said, if you wish to consider making real estate investments, you should work with a broker who understands the local market and has a working knowledge of the process and potential pitfalls of using retirement funds to invest in real estate.

Click below for more information.

Intro to Real Estate Investment with IRA funds

This entry was posted on Wednesday, April 21st, 2010 at 12:01 pm and is filed under Investment Real Estate, Use retirement funds to buy real estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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